In this blog, I have explained Taskrabbit business model and revenue channel. Read further to know how they innovated a separate market for themselves.
The handyman industry is expected to grow at a CAGR of 17.2% and possibly would reach a valuation of $1.65 billion by 2032.
So, what exactly is Handyman service?
It is a platform that connects freelance working professionals with people looking for someone to do their daily work.
Additionally, there are a lot of available service categories.
Some of the services include A/C repair, furniture assembly, electrical, plumbing, and many more.
They offer varieties of services and the same time, list many professionals to serve. Therefore, it gives the choice of choosing the best one among them.
Taskers work in more than 35 different categories in the US and make an hourly wage of $48.
Well, let's start with the beginning ✨
Taskrabbit and their Business model
RunMyErrand was the forename before it changed to Taskrabbit. Leah Busque founded TaskRabbit in 2008. And launched their first mobile app in 2011 and had over 35 employees working for them.
For each month, they consistently generated revenue of $4 million 📈
So, now move to their business model ⬇️
It is an aggregate model where the company doesn’t own any tangible asset, instead, they connect both parties willing to serve (Tasker) and those who need those help (Task poster).
In their initial stage, they struggled to acquire new users for the app, and soon they found a way out.
Taskrabbit has been specializing in household service and is one of the dominant players for several years now. This gives them a bigger hand in acquiring new customers and creates Brand identity.
In 2012 they raised over $37.7 million as their funding. After a year, they introduced a new model to enable the tasker to fix their rates & schedules, and when a profile matches the requirement, the platform would send them an alert.
In 2017, IKEA groups announced their acquisition of Taskrabbit, and they assured complete freedom toward operation. In 2018, they entered the UK market and had a presence in a global market.
Now, move on to the tasks which had their primary focus ⏭️
Intermediator: Being an intermediator between the service providers and seekers. Their main focus was to enhance the relationship on both ends.
Customer supports: Providing customer service throughout the day.
Manage cash payments: To improve the efficiency of the payment transaction.
Onboarding Taskers and users: If TaskRabbit fails to onboard both Taskers and users, the app will not be as successful. It is an important task to increase the availability of taskers and task posters.
Frequent app updates: To give a hassle-free user experience, they provide non-stop updates to their users. It is one of the primary responsibilities.
Marketing: We can't, after all, bypass marketing. Unless you have a brand called Tesla, every business requires a marketing strategy to promote its product or service.
App for Both [Tasker & Task poster]
Taskrabbit has the goal of serving two customers besides taskers and task posters. Both users have a separate app for themselves. Regarding the roles and responsibilities, the app has individual features to assist.
The app interface shows the tasker the job that has been allotted to them. On the other hand, the user can look for any sort of service. The app interface is straightforward in this case.
Let me demonstrate with simple steps 😉
Workflow for Task poster
Choose a category: After opening the app, you will show various categories and have to choose one.
Description: Following that, write a description of your work time, date, address, and skills.
Options: Once you have posted your task, then you will be offered many taskers who match your requirement.You can choose one among them.
Final process: Finally, the tasker will arrive at your house, and after the fulfillment of the task, the app initiates them to accept cash via app or offline payment.
Value Proposition 🔥
- The ability to work at their preferred hours
- Hourly pay
- To generate a passive income
- Has the option of accepting or declining the task
- Fast payment
For Task poster
- Provide customer support 24*7
- Easy access to the working professional
- Have the option of many choices (Taskers)
- (Taskrabbit) Examine each Task
Taskrabbit is a service-based company, like many other on-demand apps, and a large portion of revenue comes from their commission.
To increase their revenue channel, they tried to explore some other ways, and later, they succeeded.
As I said earlier, the ways are Trust & support fees, surge pricing, and commission from advertising. First, let’s have a clear background on the commission model.
Commission: At the fulfillment of each task, the company earns a commission. More than being an intermediator, they are adding value by offering app maintenance, insurance, and 24/7 customer support.
The commission was charged at the rate of 15%. For example, if the Task poster makes an online payment, the company deducted 15% as their commission and transferred the remaining amount to the tasker.
Trust & support fees: Apart from charging commission from the users, they charge an additional 7.5% trust & support fee which is paid by task poster directly to the company.
Surge pricing: If a service is in high demand, the algorithm raises its price.
However, if the user is in desperate need of that services, they would pay the additional fees.
Thus, it manages supply and demand.
Commission from advertising: In-app advertising enables the Taskers to promote themselves in the listing. For this, they have to pay a premium to TaskRabbit.
At last, we arrived at our final session 😇
People prefer to pay others instead of investing their precious time in daily chores. Taskrabbit is one of the best alternatives to traditional service providers; additionally, they provide an app platform and gives access to a large number of taskers to its user.
Taskrabbit has surely changed the handyman industry with its initiatives. They figure out a way for working professionals to earn their living and also elevated the efficiency of bookings.
Therefore made everyone's life easier.
Planning to develop an app like Taskrabbit?
If you are an entrepreneur planning to build an app for your Handyman business, look no further than us.
We have developed an app called Wooberly Handyman with innovative features and functionality. Also, You can tailor it to your specific business niche and demand.
Some of the features include:
- Multiple payments
- In-app wallet
- In-app chat
- Promo code
Stick with us to make your business dreams a reality. Schedule your free demo with us.
Disclaimer: The term 'TaskRabbit' is only used for marketing purposes, and we are not associated with the company in any form. The source code and design of our products are fully owned by us. We do not indulge in using copyrighted materials.